Living in the US with money in India: what to report, where it earns most, and what to keep

Six steps: the forms the IRS expects, where your rupees keep the most after US tax, the Indian funds, and income taxed in both countries.

For US residents with bank deposits, mutual funds or rent in India.

Your steps

1. 1

   STEP 1 OF 5 · CALCULATOR

   What do I have to report to the IRS?

   If your foreign accounts together top $10,000 at any point in the year you file an FBAR; Form 8938 has its own, higher thresholds. The penalties for missing them are far larger than any tax.

   Working out your number

   Open with my numbers →Read: Reporting Foreign Accounts: the FBAR and Form 8938Read: Which Indian accounts go on the FBAR?

   DO THIS NOWFind the highest balance each Indian account reached last year and convert it at the Treasury year-end rate.

   Mark done
2. 2

   STEP 2 OF 5 · CALCULATOR

   NRE, NRO, FCNR or a US account: what do I keep after US tax?

   NRE and FCNR interest is tax-free in India, but the IRS taxes it like any other interest. Compared after US tax and the rupee’s drift, a US account can keep more.

   Working out your number

   Open with my numbers →Read: NRE and NRO Accounts and Bringing Money OverRead: Is FCNR interest tax-free in the US?

   DO THIS NOWNote each deposit’s rate, currency and maturity date, then compare them with a US account.

   Mark done
3. 3

   STEP 3 OF 5 · CALCULATOR

   My Indian mutual funds (PFIC)

   Indian mutual funds are PFICs to the IRS, with their own tax and a Form 8621 for each fund. Knowing the cost tells you whether to keep them, elect, or sell.

   Working out your number

   Open with my numbers →Read: Foreign Mutual Funds and the PFIC Rules

   DO THIS NOWList each fund, its value and gain, and whether it was ever on a Form 8621.

   Mark done
4. 4

   STEP 4 OF 5 · CALCULATOR

   Keep money in India or bring it here?

   Higher Indian interest against a rupee that has drifted down over time: the answer depends on the rate you plan with and on what the money is for.

   Working out your number

   Open with my numbers →Read: NRE and NRO Accounts and Bringing Money Over

   DO THIS NOWSplit your rupees into money you will spend in India and money you will not, and decide for each part.

   Mark done
5. 5

   STEP 5 OF 5 · READ AND ACT

   Rent and interest from India, taxed twice?

   India taxes rent and interest earned there first. The US taxes them too, then gives a foreign tax credit for the Indian tax, so overall you pay about the higher of the two rates, not both.

   Read: Rent, Interest and Gains from Home, and the Foreign Tax CreditRead: When the US Taxes Your Income from Everywhere

   DO THIS NOWCollect the TDS certificates (Form 16A) for tax withheld in India this year: you need them for Form 1116.

   Mark done

Every number above is worked out by the calculator it links to, with its formula and sources on that page. The Indian rules mentioned in these steps are described as published on 2 October 2026; check them with a Chartered Accountant before you act. The rupee rate starts at ₹95.81 per dollar, the Federal Reserve’s rate for 25 September 2026 (FRED DEXINUS). Estimates, not advice.